The importance of preserving the ecological balance has paved the way for developing water lubricated bearings for marine vessels and other various applications. These bearings have found widespread applications in high pressure water pumps, water-power plants and power generation stations in sea, mining industries, ships, boats and submarines. To investigate the performance envelope of a water lubricated journal bearing (WLJB) with partial slip/no slip pattern, a multi-groove bearing model is developed and analyzed using CFD in the present study. Taguchi analysis method is utilized to determine the highest influential parameter affecting the pressure distribution and load-carrying capacity of a water lubricated journal bearing. From Taguchi method, optimum values identified for design parameters such as attitude angle, groove angle, groove height and number of grooves are 60°, 9°, 7 mm and 2, respectively. For the optimum combination model, a higher load bearing capacity of 1484.5 N is attained. Approximately, 2.88 times increase in peak pressures are noted from the current optimal bearing model by comparing with previous findings. Results indicated that the number of grooves and groove angle are the most influential parameters affecting the bearing load capacity. Partial slip conditions are applied at the grooved surfaces of a bearing model designed based on the identified optimal groove parameters. Influence of varying slip intensity on bearing load capacity is analyzed using CFD simulation. Appropriate selection of slip regions and slip amplitude is found to play a major role influencing the performance of the water lubricated journal bearing.